The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Galaxy Digital is a blockchain and digital assets company that operates across the full crypto ecosystem. Founded in 2018 and headquartered in New York, the firm provides a wide range of services including trading and market making, investment banking and advisory, asset management, mining, and infrastructure development. Galaxy Digital serves institutional clients such as hedge funds, family offices, corporations, and governments, offering them access to digital assets, derivatives, custody solutions, and strategic guidance on blockchain technology and tokenization. In October 2025, It launched GalaxyOne, which is a retail financial technology platform designed for individual investors seeking access to both traditional and digital markets. Galaxy Digital completed its U.S. public-market debut in May 2025.

Q3 2026

Q2 2026

Q1 2026

Galaxy Digital (GLXY): Company Profile, Stock Price, News, Rankings

legacy

Galaxy Digital

galaxy digital

Good morning, everyone, and welcome to the Galaxy Digital third quarter 2026 earnings call. Today's call is being recorded. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your telephone keypads. To withdraw your questions, you may press star and two. At this time, I'd like to turn the floor over to Taylor Reinhardt, Head of Investor Relations. Please go ahead.

Good morning, and welcome to Galaxy's third quarter 2026 earnings call. Before we begin, please note that our remarks, including answers to your questions, may contain forward-looking statements. Actual results may differ materially from those described in these statements as a result of various factors, including those identified in the disclaimers in our earnings release or other filings, which have been filed with the U.S. Securities and Exchange Commission and on SEDAR+.

Forward-looking statements speak only as of today and will not be updated. Additionally, we may discuss references to non-GAAP metrics, the reconciliations of which can also be found in our earnings release. Finally, the information on this call does not constitute a recommendation, solicitation, or offer by Galaxy or its affiliates to buy or sell any securities. With that, I'll now turn the call over to Mike Novogratz, Founder and CEO of Galaxy, to discuss our results.

Good morning, everyone, and welcome, Taylor, to the Galaxy team. You guys will get to know her well and will like her as much as we do. Listen, we had an awesome quarter. I'm really proud of what the team delivered. But what excites me more is what performance says about where Galaxy is headed. We've spent years investing ahead of two enormous shifts, finance moving on chain, and the build-out of AI infrastructure, and we're increasingly seeing those investments translate into results with the strategy playing out in three important ways this quarter.

First, we saw a strong rebound in crypto markets. Bitcoin was up more than 40% with a meaningful improvement in sentiment and client activity. Our global markets business capitalized on that momentum, growing trading volumes and expanding client engagement.

We also saw a significant appreciation across our investment portfolio, reflecting the value of capital we've deployed across crypto and the broader technology ecosystem. Second, the opportunity in digital assets is getting bigger, and I think we're just scratching the surface of what's ahead. Crypto remains an important and growing asset class, but the opportunity extends well beyond that. With digital assets increasingly becoming the foundation for the future of finance. Increasingly, those two worlds are coming together.

You can see it in the growing adoption of stablecoins, the tokenization of traditional financial assets, and the participation of major financial institutions. I have a tremendous amount of conviction that the financial architecture developed by the crypto industry will underpin much of how the financial system operates in the future.

Galaxy has spent years investing in these capabilities, and while we are still in early stages, I believe that investment will translate into meaningful results over the next several years. Regulatory clarity will be an important part of that. While the CLARITY Act has not become law, unfortunately, the SEC and the CFTC are working towards clearer frameworks. There is still a lot to sort out, but the direction is encouraging. Investing ahead of these shifts has always been part of our strategy.

We did it early in crypto, investing in companies and technologies that help build the ecosystem. Now we are taking that same approach to AI, increasingly investing in the next generation of companies through our investment strategies in our balance sheet. Third is data centers, where we are building a very sizable business. Helios has come a long way in the past year.

We are now generating approximately $80 million of leasing revenue per quarter from phase I. As phase II comes online next year, we expect to exit 2027 at an annualized leasing revenue run rate of between $800 million and $850 million, based on our current delivery schedules. That is a substantial business from the capacity we have already leased, and the momentum is building.

We have significant additional approved power available to lease and a deep development pipeline beyond that. I want to address the timing of leasing announcement at Helios II. Earlier this year, I spoke about the possibility of reaching agreement during the summer. We were in advanced discussions around a potential transaction, but as the market dynamics shifted material in late summer, we ultimately decided not to move forward on the terms being considered.

The market for large scale power via data centers has become increasingly constrained, while demand for capacity beginning in 2028 and beyond has strengthened. With more than 800 MW of secured power and supporting infrastructure, we believe Helios II is an even more valuable asset today than it was just a few months ago. With delivery plan for 2028, we have the flexibility to evaluate our opportunities and get the right deal.

We have built Galaxy by adapting to changing markets and being disciplined about where we commit capital. These are large, long-term agreements, and we are not going to compromise on terms just to meet an announcement date. We continue to have productive and active discussions with prospective customers with a focus on maximizing long-term value for shareholders. As the Helios campus scales, we are fundamentally changing the earnings profile of Galaxy.

We have established a digital asset franchise with significant earnings power, growing opportunities for recurring fee-based revenue, and a data center business is adding long-term contracted cash flows. Together, these businesses give us multiple drivers of growth and more diversified earnings base that we believe will make Galaxy a stronger, more durable franchise over time. We also have the balance sheet to back that ambition.

It is a competitive advantage that allows us to commit capital as a principal, invest in growth across our businesses, and take advantage of opportunities as they arise. We are focused on putting that capital to work where we see the most attractive long-term returns. That includes investing in our own shares when we believe they are trading at a meaningful discount. We have repurchased $200 million year to date, and this morning announced an additional $200 million share repurchase authorization.

As significant shareholders ourselves, we see buybacks as another potential way to allocate capital thoughtfully to create long-term value. Chris will now take you through how we are translating these opportunities into results across our businesses and what we are focused on next. Chris, over to you.

Thanks, Mike. Starting with digital assets, one of the strengths of our global markets business is the breadth of solutions we can offer clients. We are seeing growing demand for more sophisticated trading and financing solutions, particularly as traditional financial institutions look to participate in decentralized markets through products and structures they are familiar with. We have spent years building capabilities for crypto-native clients, and that experience gives us an advantage as traditional finance increasingly moves on-chain.

We understand these markets, can move quickly, and have the flexibility to develop solutions for both groups. Lending is a great example. We have expanded the Galaxy Onchain Financing Rate, or GOFR, which gives clients access to on-chain financing, alongside our growth financing facility, which allows us to support more lending activity through external capital. We are expanding our loan syndication, collar lending, and structured financing capabilities, broadening the range of clients and financing needs we can serve.

We are seeing the same innovation across trading. Our derivatives business executes sophisticated options and hedging strategies for clients. This quarter, we completed our first Compute Link derivatives transaction, extending our capabilities into an emerging market that we believe has the potential to grow into a sizable new standalone asset class. In asset management, we are expanding our investment strategies and product offerings to meet evolving institutional demand.

During the quarter, we launched the Galaxy Sharplink Onchain Yield Fund, an actively managed strategy providing access to yield opportunities in decentralized finance through an institutionally managed SMA for a public company. Sticking with on-chain asset management theme, SWEEP, the first-ever decomposable 24/7 on-chain money market fund in partnership with State Street Global Advisors, is now approaching $300 million of AUM, which we believe is an early signal of strong product market fit among first-mover institutions interacting with tokenized real-world assets.

With Galaxy Digital Ventures, we are progressing towards a first close of Fund 2, expected towards the end of Q4, with a fund target size of $250 million-$300 million. As an investor, you only win the right to raise a second larger fund once you have proven out a strong process and great returns, and the GEV team has done that with Fund 1, currently marked at 2.25 gross MOIC.

In digital asset infrastructure, we are seeing growing momentum with some of the world's largest financial institutions and are expanding our capabilities and offerings across tokenization, custody, and staking to meet their evolving needs. Staking is an area where we are seeing growing engagement with major institutions. Assets under stake grew 64% in the quarter to $4.6 billion.

While this was primarily driven by price appreciation of the underlying assets in the quarter, we've also seen a number of large ETF providers begin delegating their ETH and SOL stake to Galaxy's infrastructure, driving over $400 million of gross new inflows in Q3 and subsequent to quarter end, and we expect additional sizable partner launches before year end. More broadly, our relationship with BNY announced this summer has been an important validation of our capabilities as we continue to deepen our engagement with leading global financial institutions.

These are complex engagements with long sales cycles, but the potential is significant. Our objective is to become a long-term strategic partner as institutions build out their digital asset businesses, creating opportunities to expand relationships beyond an initial mandate and generate meaningful recurring revenue over time. Turning to our data center business.

We're continuing to deliver against our development plans while advancing a substantial pipeline of future opportunities. This was our first full quarter of leasing revenue from Helios, marking an important milestone as our development investments and long-term contracted revenues begin converting into realized contracted cash flows. Phase II, which will deliver an additional 260 MW of critical IT capacity, is fully funded and under construction, putting us in a strong position as financing for new data center developments become increasingly constrained.

Both buildings and the supporting substation are progressing on schedule and within budget, building on our successful delivery of phase I. Structural steel installation is well underway on the first building, construction is advancing on the second, and key electrical infrastructure is being installed. We expect construction activity to ramp significantly over the coming months, with data hall deliveries scheduled to begin in the second quarter of 2027.

On permitting, we've secured the key environmental approvals required for ongoing construction at Helios. While certain additional approvals remain outstanding following Governor Abbott's September directive, we do not currently expect an impact to our construction progress or our anticipated energization timelines. Turning to Helios II. To build on Mike's earlier comments, we saw several important shifts in market dynamics beginning in late summer that we believe have meaningfully strengthened our competitive position.

Forward power availability has become increasingly constrained, with new power approvals more difficult to secure and delays in competing developments limiting the amount of large-scale compute capacity that can realistically be delivered between 2028 and 2030. At the same time, we're seeing a meaningful increase in demand from hyperscalers, frontier labs, and neoclouds now looking to secure capacity for 2028 and beyond to support existing backlogs and future growth.

Underlying demand for compute remains as strong as we've ever seen it. Financing markets have also become more selective, and we believe access to capital will increasingly favor developers with proven execution capabilities, high-quality counterparties, and financing structures that appropriately allocate risk. Having successfully delivered Helios phase I, with phase II fully funded and progressing on schedule, we are building a track record that we believe will differentiate Galaxy in this environment.

Meanwhile, the evolving regulatory and political landscape in Texas has created additional uncertainty around future data center development. Based on our current understanding of the applicable requirements, we do not believe Helios II is subject to the same uncertainties facing certain other projects, further strengthening its relative attractiveness. Taken together, these developments have changed how we evaluate the opportunity at Helios II.

We're taking the time to engage with the right counterparties and evaluate structures that we believe can maximize long-term shareholder value for Galaxy. The focus of our active conversations is squarely on investment-grade hyperscalers or counterparties supported by investment-grade credit enhancements, considering not only headline economics and counterparty quality, but also critical lease terms, probability of execution, and future growth potential outside of the Helios campus. Beyond Helios II, we've made meaningful progress through ERCOT's Batch Zero process.

As announced in September, five of our Texas data center projects received conditional Batch Zero classifications, representing approximately 4.2 GW of capacity. That includes more than 1.6 GW of previously approved base load capacity at Helios I and Helios II, which remains largely unaffected by the ongoing ERCOT process. Our three expansion projects, Caspian, Selene, and Helios III, received studied load classifications, representing an additional 2.6 GW of potential capacity.

While we submitted Caspian for base load classification, ERCOT ultimately reclassified it as studied load, and our subsequent dispute for reconsideration was denied. Although that wasn't the outcome we had sought, Caspian remains part of the Batch Zero study, and we expect greater clarity on power allocation and anticipated energization timelines for these projects in April 2027, based on the timelines communicated to us by ERCOT.

These classifications cover a substantial portion of our broader development pipeline of more than 5.7 GW, providing a foundation for potential growth well beyond the initial phases of Helios. Beyond our data center business, we're also investing in the growth of AI across the firm, with a focus on opportunities ranging from frontier model developers to emerging technologies at the intersection of AI and financial infrastructure.

Through Galaxy Ventures and our broader investment activities, we're building on our experience gained from investing early in the digital asset ecosystem. To date, we've deployed more than $80 million across 11 portfolio companies via 17 investments, including SpaceX, Etched, Karta, Ornn, TRM Labs, and Architect. While these companies are all early in their growth journey, our current unrealized mark to market on that pool of investments is already 3.4x.

Importantly, our ambition extends beyond just generating returns for our balance sheet. We're using these investments to build a track record, establish relationships, and create commercial opportunities across the Galaxy platform. Across our businesses, we're focused on translating the investments we've made into tangible results and long-term earnings growth. I'll now turn the call over to Tony to discuss our financial results.

Thanks, Chris and Mike. For the third quarter, Galaxy reported net income of $323 million, adjusted gross profit of $569 million, and adjusted EBITDA of $455 million, marking a sharp improvement from second quarter performance. Our results reflected the continued earnings power of our digital assets franchise, the first full quarter of leasing revenue from Helios, and significant appreciation across our investment portfolio.

Firm-wide operating expenses, excluding grossed-up transaction costs, digital asset impairments, and pass-through data center operator costs, were $161 million, compared with $147 million in the prior quarter. This increase was primarily driven by higher depreciation and amortization expense related to Helios phase I entering full operation. Our operating businesses generated combined adjusted gross profit of approximately $150 million, up more than 75% from $86 million in the prior quarter, and adjusted EBITDA of $60 million, compared with approximately $1 million in Q2.

On a segment level, starting with digital assets, the business generated $71 million of adjusted gross profit, up from $66 million in the prior quarter, reflecting increased client activity and the breadth of our platform. Within global markets, adjusted gross profit increased to $53 million from $49 million in Q2. Our digital asset trading volumes grew 12%, outperforming the broader spot market, where volumes declined, demonstrating the strength of our trading franchise.

In lending, our average loan book grew over 25% to approximately $1.8 billion, reflecting continued demand for our financing solutions. Asset management and infrastructure solutions generated $19 million of adjusted gross profit, compared to $17 million in the second quarter. Assets under management increased by over 30% to $5.9 billion, driven by growth of more than 40% in ETFs and 30% in alternatives.

As Chris mentioned, assets under stake also increased more than 60% to approximately $4.6 billion, reflecting both market appreciation and new capital inflows. Fee growth was more modest during the quarter, as reported AUM reflects quarter-end balances, including capital raised late in the period, while fee revenue reflects activity throughout the course of the quarter.

Turning to data centers, we generated approximately $79 million of adjusted gross profit and $69 million of adjusted EBITDA, representing the first full quarter of contribution from Helios phase I. Capital expenditures were approximately $757 million during the quarter, compared with $448 million in Q2. We expect spending to increase as phase II construction progresses, with a significant portion of the remaining construction expenditures anticipated in the first half of 2027.

As a reminder, there are a few moving pieces related to interest income and expense in our data centers business that will affect our financials over the coming quarters. As financing proceeds are deployed into construction, our short-term investment balances and related interest income will decline. At the same time, a greater portion of our borrowing costs will be capitalized on the balance sheet rather than expensed through the income statement.

At quarter-end, data center segment had approximately $6.8 billion in total assets and approximately $5.3 billion in total liabilities, reflecting continued investment in Helios and the financing secured for phase II. We do expect this segment's total asset base to grow as construction progresses and capital is deployed.

The treasury and corporate segment generated $419 million of adjusted gross profit during the quarter, compared with a $42 million loss in Q2, driven primarily by significant appreciation across our digital asset holdings and private investments during the quarter, including notable contributions from Etched and Forward Industries, among others. As Mike mentioned, these investments reflect our ability to identify compelling opportunities across the digital asset ecosystem and broader technology ecosystem and represent an important source of long-term value for Galaxy.

We also held approximately $1.7 billion in net digital assets and investments at quarter-end, up nearly 50% from Q2, including exposure to Bitcoin and other liquid digital assets. Firm wide, we ended the quarter with approximately $4.9 billion of cash, stablecoins, and treasury bills, compared with $2.5 billion at the end of June.

This increase was driven largely by proceeds from the $3.5 billion financing completed during the quarter to fund construction of Helios phase II. Looking ahead, we anticipate pursuing phase III financing in the first half of 2027, with the structure of that financing being informed by market conditions, comparable transactions, and our assessment of the most attractive terms available. We also have $445 million of exchangeable notes maturing in December 2026.

We have the necessary resources on balance sheet to meet that maturity today, but are always evaluating different financing options in the context of our overall liquidity position and broader capital priorities. We exited the quarter with approximately $3 billion of book equity, with more than 80% allocated to our operating businesses, providing a strong capital foundation as we continue to scale.

On share repurchases, we deployed approximately $79 million during the third quarter, and as Mike mentioned, we purchased the remaining portion of our previously authorized $200 million during the month of October. These repurchases have more than offset dilution from equity-based compensation, contributing to a net reduction in shares outstanding year to date.

The board's approval of an additional $200 million authorization announced today allows us to continue opportunistically buying back stock when we believe it's trading at a meaningful discount to intrinsic value, and it fits within our broader capital plan. With that, operator, let's open the line for questions.

At this time, we'll begin the question and answer session. To ask a question, you may press star and then one on your touchtone phones. If you are using a speakerphone, we do ask that you please pick up your handset before pressing the keys to ensure the best sound quality. If at any time your question has been addressed and you would like to withdraw your question, you may press star and two. Again, that is star and then one to join the question queue. Our first question today comes from Patrick Moley from Piper Sandler. Please go ahead with your question.

Hey, good morning, everyone. This is Will Copps for Patrick. I want to go back to the comments on the Helios lease discussions from over the summer. Can you help us understand what led you to step away? In what terms you'd need to see the deal you're willing to sign? Was it driven mainly by economics and revenue or potentially more by counterparty and credit support or something else? Thank you.

Hey, Will, good morning. Thank you for joining, for the question. As we said in the remarks, we had been pursuing opportunities throughout the year at early stages, given that Helios II's energization timeline really isn't until the middle of 2028 at the earliest expected right now. Those conversations got pretty serious going into the summer, and then a lot of stuff happened.

We saw actual projects around us getting delayed. We saw regulatory headwinds, not just in Texas, but across the country, tightening up, and therefore an expectation that available power on the forward was going to be tighter than I think we or the market really understood. At the same time, we saw a number of financing structures start to come into the market. Think like investment grade wraps around non-investment grade potential counterparties that we thought were interesting, and that we were evaluating.

The issue there is the devils are in the details, and so an investment grade wrap that doesn't actually achieve investment grade protection for both our debt and our equity isn't really an investment grade wrap. You don't really know those things until you get into the details and you get to the finer points.

Finally, to sort of back that up, the financing markets, obviously, around that time also started backing up and the focus on structure counterparty really came into light for us and for the whole market. With all that as the backdrop, we decided to take a pause, take a breath, reignite conversations more broadly. That sort of happened at exactly the same time that a number of the big hyperscalers started turning their attention to 2028 available power.

That's what led us to decide to broaden out the process. That's why now we're in active conversations with a number of high-grade potential tenants who are now very focused on figuring out what their power strategy is for 2028.

Our next question comes from James Yaro from Goldman Sachs. Please go ahead with your question.

Good morning, and thanks for taking the question. I was hoping you might be able to update us on your current capital deployment priorities, in light of the new buyback program, the maturing notes at the end of the year, as well as the continued need to deploy capital into the data center segment. Could you speak to your appetite, I guess, or maybe just expand on your appetite to potentially replace the notes maturing in December, with additional debt?

Yeah, sure, James. I'll take that one. First, when we think about capital planning, we start with what is the business need across our two businesses, which obviously have different capital need profiles. That is the first focus for capital requirements. We obviously have a funding and financing plan for the data centers. The digital asset businesses broadly tend to be self-financing in many ways as financial services oriented. We think of our business needs as the first priority.

Secondly, I would say we think about a capital buffer and cushion on the balance sheet. Maintaining a healthy, strong, robust balance sheet I think is a very important principle from our standpoint. As we talked about, we have significant cash, stablecoins, and liquidity on balance sheet in addition to liquid investments on the balance sheet that we have the ability to shift around as necessary.

As you'll see, we've got about 80%, actually more than 80% of our capital now deployed into our operating businesses. We've talked about this over the last couple of quarters. You should expect that number to increase, as we see the investment in those businesses grow out. Then third, we extinguished the buyback, the $200 million initial.

We thought it was appropriate to have an additional authorization. But we will be very, I would say, opportunistic in how we think about deploying additional capital from a buyback perspective. The second part of your question, remind me. What was the second part of your question?

If you could just maybe just expand a little bit on the comments around the exchangeable notes and I guess appetite to replace that. I think you pointed out you have enough resources to not have to do so, but just maybe the moving parts there.

Yeah. Got it. Thanks. Yeah, the exchangeable. We have $445 million of exchangeable notes maturing in December. Look, the way we think about that is, first and foremost, we have the capital resources to pay that back in full, without refinancing it. As you know, we did a convertible issuance Q4 of last year. Those resources were deployed across our operating businesses and to sort of pre-fund some of this. We are not going to pre-commit to anything in terms of what we may or may not do for broader debt or capital planning. But suffice to say, we have the resources to pay that back, in the near term.

Our next question comes from Peter Christiansen from Citi. Please go ahead with your question.

Good morning. Thanks for the question. I wanted to ask about the digital assets part of the business. It generated a decent gross profit this quarter, yet EBITDA still negative. I am just curious, what are some of the key investments that is suppressing profitability there? How do you think for digital assets to become more sustainably EBITDA, what do we need to see occur?

Yeah. Thanks for the question. This is Tony. I will start, and Chris can add as he sees fit. I would say, broadly, the second quarter, as we talked about in our comments, the broader landscape was volumes and activity in the crypto space were down. Obviously, the price of crypto is still something underlying that drives a lot of the activity in our trading and derivatives businesses. We continue to outperform in that space.

Our volumes were up on a quarter-over-quarter basis. We believe we are continuing to take share in those businesses. Our lending book grew about 20%-25% quarter-over-quarter, and we are adding recurring revenue streams, which we think is the most important part of building a more durable business. We do continue to invest. We are making investments in a few different areas that we have talked about. Digital infrastructure areas where we see future growth.

As activity continues to pick up, I think you should see us move closer towards consistent profitability in that segment. The other thing I would mention, it is a bit nuanced, but we did have a small accounting adjustment in terms of how we accounted for certain things in the business, that if not for that change on a quarter-over-quarter basis, we would have been profitable in that segment just this quarter. It is sort of a one-time shift, but other than that, we are. Chris, I don't know if you have any other comments.

Yeah, I'll just supplement that a little bit. I think there's a few things going on in digital assets in the broader financial infrastructure markets that drive our thinking and our planning around profitability and what we're investing in. The key is one, volumes in the narrow niche crypto market obviously are suppressed and are a bit challenged at the moment.

Our business generally is a pipe business, where the more volume that flows through it, the more opportunity there is for us to generate revenue for the business, historically at least. We do have a long-term view on crypto assets, like Bitcoin, for example, and the decentralization theme, particularly in a more complicated, digitally driven agentic AI world. That aside, the other thing that's happening is a transition to real-world assets of the legacy financial system moving on-chain.

What we're doing today is prosecuting the business that we can in the crypto markets while investing in technology and people, and licensure, for example, so that we are going to be in a position to be on the forefront to be able to service the transition of volumes from traditional legacy real-world assets on-chain into a digital form.

While we never like to lose money, ever, being able to sustain the amount of revenue we have in this niche market while having the luxury of having the capital to be able to invest in growth so that we're positioned to capture that mega opportunity is really where we're at in the business today.

Our next question comes from James Faucette from Morgan Stanley. Please go ahead with your question.

Thanks very much. Wanted to ask quickly on Helios I and working with CoreWeave there. Just any insight you can share with us around what you know about their agreements with their partners for not only phase I, but also if that same partner is likely to also take on phases II and III.

Sure. Good morning, James. Thanks for joining for the question. I will set the stage for our relationship with CoreWeave, how it is set up, and how we understand their contractual structure and how their business model works. I think it is important, and it is illustrative of how we think about the risk and also the insight we have or do not have into their ultimate operations.

Our relationship with CoreWeave, with the three leases that exist today for Helios I, also that CoreWeave's parent company. We face CoreWeave, Inc. The way we think about that is that means that ultimately we face CoreWeave's entire portfolio of customers. We face effectively CoreWeave's residual equity and interest in those contracts after their site-level GPU secured financings. That is pretty much the business model. That is our exposure.

We like that exposure because what it means is that we are not subject to, at our facility, a single counterparty look-through exposure in the instance where there is an idiosyncratic problem with that one counterparty. CoreWeave's portfolio of pretty much all the entire hyperscaler universe and most of the frontier labs is the credit that we look to across their whole portfolio.

CoreWeave's contracts, while we do not have insight into all of them or into the specificity necessarily, CoreWeave generally contracts with its customers under four, I believe now the average is closer to five years as they reported, on a GPU hour basis generically, not on a facility level agreement. What that means is CoreWeave has the ability to balance their loads to their customers across their data center footprint.

That is important because it means that the answers to the question of who is the underlying tenant at Helios, by definition can and we expect will change over time, both because they commit generic GPU loads to their clients and because we know that the tenors of their contracts are shorter than the leases they have to sign, by definition.

We have been communicated from CoreWeave that the loads running today that we see every day on the screen in Helios I are coming from a customer contract that is currently allocated to a large multi-trillion dollar investment-grade hyperscaler. We do not have insight yet into ultimately who is going to be in phase II, let alone phase III.

That will happen as we get closer to energization and data hall turnover, and they decide at that point in time, in 2027, where their load is needed and where they want to allocate load to a particular facility. That is really the setup. I know that investors want to hear a direct look-through to investment-grade counterparty on the other side. It is just not the business model and not the way the contracts are set up at the CoreWeave side.

It is the platform and the risk that we underwrote when we originally did the transaction. That is not to say, I will add one thing. That is not to say that there won't be opportunities if it is credit enhancing to look through to a direct customer and drop it down in an SPV, for example, which we have seen happen once or twice in the market so far.

That sort of is downstream from CoreWeave financing their GPUs, and getting better execution on their GPU financing through an SPV direct deal and would come with our ability to approve or disapprove of any change in the tenant from the CoreWeave parent company down to a particular SPV. We will look at that on a case-by-case basis and evaluate it and assume it is credit enhancing. It is obviously something that we would engage with.

That is really helpful. Back on the Helios II and kind of the engagement there. Obviously, I think we are all sensitive to the changes in some of the market dynamics, et cetera, that Mike alluded to and mentioned at the outset. Are there key incremental market changes or clarifications that we should expect to come through before we would be able to announce a new tenant for Helios II? I am just trying to get a sense of what the timeline and checklist is we should be paying attention to for that. Thanks.

Yeah. The dynamics there, I tried to lay it out as clearly as possible in the prepared remarks. There are a few things that I would look towards. There is nothing today holding us back from executing on what would be a deal with an end tenant. The speculation around late summer and the timing and the conversation we are in, we could have signed a deal had we wanted to. A lot of that was in our control to make a decision to go forward.

We proactively chose not to because of the change in market dynamics. That still sort of exists today. There is obviously Texas. There is a lot going on in Texas, from a regulatory perspective. There are some key dates coming up. In December, we expect to have clarity on audit results that we have submitted across the assets, including Helios II.

All of those things. In April of 2027, we expect to get allocations of Batch Zero, Studied Load, power, et cetera. All of those things are on potential tenants' minds. What I would say quite clearly is, there are absolutely investment-grade tenants who, despite questions around the ERCOT process, want to contract and lock up power.

When they do the work on our portfolio, in particular on Helios I and Helios II, we think they generally come to the same conclusion we have, which is Helios II is a pretty unique asset in terms of when its studies were approved prior to the batch process and the likelihood that Helios II is going to be unimpacted generally by any of the uncertainty.

Nonetheless, those dates are key, and for some of the tenant base looking at it, they're looking for us to pass through those unscathed as we expect to, in order to sort of finally contract. Again, that's not the entire base. There are absolutely deals we expect we could do. The entire universe, clarity on the regulatory front, in Texas in particular, would help the process along.

Our next question comes from Devin Ryan from Citizens Bank. Please go ahead with your question.

Thanks. Good morning, everyone. I want to come back to Chris's comments on kind of broadening the pipes to be able to trade more, kind of couple parts here. What else are you watching on regulatory guidance that you guys think is critical from here? Assuming that progresses, how are you thinking about where Galaxy is best positioned to participate in tokenization? Meaning, how do you see Galaxy being able to compete with obviously well-funded incumbents that will likely be coming here as well?

Are there specific real-world assets that are more attractive to Galaxy? Even beyond just trading and trade finance, how do you see Galaxy's potential infrastructure partner here as we kind of progress of this world of tokenizing more real-world assets and trading them? Appreciate there's a lot in there, but just would love some thoughts. Thanks.

Yeah. Hey, it's Mike. Listen, so our big bet is that the infrastructure that crypto created is going to end up being the infrastructure that a lot of the traditional world operates on. When that happens, we'll see. It is starting to happen. I would tell you that almost every TradFi shop is building towards that, partly because they have to, because if it happens, they need to be there.

One of our businesses that we're putting a lot of effort into and is growing is actually being the partner to help build that infrastructure for TradFi companies. So that's in some ways a fee or a SaaS business, but the real upside of that is once you get partnership, the ancillary services, the trading, the potentially offering other products, that's where the growth of those things come.

Galaxy Digital (GLXY) Q3 2026 Earnings Call Transcript

Company Participants